The FBI, US Internal Revenue Service (IRS), and German police teamed up to take down Cryptonator, an online digital wallet and cryptocurrency exchange. This big move happened over the weekend and dealt a heavy blow to shady cryptocurrency operations.
Roman Boss, also known as Roman Pikulev launched Cryptonator in December 2013. This platform allowed users to store, transfer, and exchange cryptocurrencies. Although it appeared to provide legitimate services, criminals used the platform for many unlawful activities. Legal documents state that Cryptonator aided in transferring $71 million for organizations the US had sanctioned, $54 million related to stolen funds, $25 million associated with dark-web marketplaces or frauds, and over $8 million linked to ransomware attacks.
The hunt for Cryptonator picked up steam in July 2021. An undercover FBI agent signed up for an account and spent about $4,195 on a dark web site selling stolen IDs. Boss told the agent they could make anonymous trades and mix currencies to hide where the money came from. Later that year, another FBI agent pretended to be part of a ransomware gang. This agent used Cryptonator to get $14,500 in Bitcoin from fake stolen data sales.
Roman Boss is facing heavy charges. The DOJ and IRS are working together to arrest him. Moreover, shutting down Cryptonator shows that the government is serious about stopping criminals from misusing cryptocurrency. This case highlights why we need stringent rules to stop people from using cryptocurrency for illegal activities.
